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Management has requested that an internal auditor serve as member of a task force that will review current receivables practices and make recommendations to improve processes. Which of the following is the most appropriate response by the internal auditor?

A. Accept the assignment provided that such consulting services are defined in the charter.

B. Decline the assignment because participation on task forces will impair the auditor's objectivity in future audit engagements.

C. Accept the assignment if the auditor believes that it will not impair objectivity in future audit engagements.

D. Do not accept the assignment because the assignment is not part of an approved audit plan.

At the beginning of fieldwork in an audit of investments, an internal auditor noted that the interest rate had declined significantly since the engagement work program was created. The auditor should:

A. Proceed with the existing program since this was the original scope of work that was approved.

B. Modify the audit program and proceed with the engagement.

C. Consult with management to verify the interest rate change and proceed with the engagement.

D. Determine the effect of the interest rate change and whether the program should be modified.

When planning the work program for an assurance engagement, an internal auditor should first review the department's business objectives and then:

A. Identify risks.

B. Review controls.

C. Determine scope.

D. Evaluate vulnerabilities.

Which two of the following are preventive controls in a check disbursement process?

1.

Daily reconciliation of the bank account used for check disbursements and prompt follow-up of unreconciled items.

2.

Segregation of the following duties: establishing new vendors, approving checks, and reconciling the bank account.

3.

An activity report detailing who accesses the check disbursement system and the nature of any action taken in the system.

4.

Evidence of strong access controls ensuring that authorized individuals have access only to the functions related to their responsibilities.

A. 1 and 3.

B. 1 and 4.

C. 2 and 3.

D. 2 and 4.

Which of the following statements describes impairment to the internal auditor's objectivity?

A. An internal auditor reviews a purchasing agent's contract drafts prior to their execution.

B. An internal auditor reduces the scope of an audit engagement due to budget restrictions.

C. An internal auditor receives a promotional gift that is available to the organization's employees.

D. An internal auditor performs an assessment of the operations for which he was recently responsible.